can domain purchases can be claimed as tax deductible "business expenses"?

[(_Y_)Man]

I have been reading around and seen a few people mention this...is it true? and how does it work?

 

[labrocca]

Yes if it's your business. Tell your accountant that reg fees are counted as a rental on an item. Third party purchases can simply be deducted as an expense of goods.

 

[Namehunter]

Like he said, yes.

 

[Duckinla]

Reg fees obviously because they have a 1 year life. I wouldn't be so sure about several thousand dollars worth of purchases though. If you plan to sell them, I think they would be a cost-of-goods and couldn't be written off until they are resold. If you plan to monetize them, I believe they would be an asset and have to be depreciated over a period of years. If you have over $2,000 worth of purchases in a year, I wouldn't be so quick to write them off directly in the first year, definitely get a professional opinion.

 

[aldwin]

If it is your business the best thing is to purchase a name and then reg it for 10 years and you can split the cost on all 10 years with depreciation.

Having it deducted on all first year could be possible, but it also depends on your earnings.. get a professional opinion and let him see what's better for you.

 

[madcamel]

Depends on which country. In my country the law specifically says that domain names expenses are not deductible. That's why I formed a company in the US.

 

[actnow]

In my country the law specifically says that domain names expenses are not deductible.

OUCH !!!

 

[prose]

This is all based off memory but I believe in Canada it's a type 46 capital expenditure. Max 30% write off.

 

[Duckinla]

I guess the question that hasn't been asked is: are you claiming taxable income from your domains? If you are, then certainly your expenses related to that income must get accounted for one way or another. If you are not, then just claiming a bunch of business expenses with no related income is a whole lot sketchier.

 

[(_Y_)Man]

I guess the question that hasn't been asked is: are you claiming taxable income from your domains? If you are, then certainly your expenses related to that income must get accounted for one way or another. If you are not, then just claiming a bunch of business expenses with no related income is a whole lot sketchier.

well what if your claiming money from advertising? isnt that in the same market...

 

[Duckinla]

Is the cost of your domains in some way related to that money you are claiming? Or do you mean money from like a job in advertising?